Transparency of financial reporting in the conditions of modern information technology

Abstract

In the article, the authors carried out a theoretical generalization. They proposed a new solution of the pressing scientific and practical problem, regarding the harmonization of financial reporting of the domestic enterprises with the international standards and formation of accounting information for efficient management of the enterprise. The primary objective of this article is the study of the current state of Ukrainian financial reporting, identification and development of theoretical and organizational methodological provisions on its harmonization with international standards and requirements of management. The authors used a dialectical method, which enabled the disclosure of informational nature of financial reporting; based on the systemic approach, they generalized the scientific experience and grounded the conceptual provisions and recommendations on the improvement of the financial reporting formation methodology for meeting the needs of financial management. The complexity of data collection, processing, and aggregation, the availability of cross- and redundant information, and the complexity of its analysis as a result of incompatibility of formats of reporting, became an agent for the development of the technological tools for formation and delivery of financial reporting. The application of XBRL in Ukraine includes the development of the XBRL taxonomy according to the national P(S)FR or sector-specific extensions for enterprises of different types of activity. This promotes the expansion of informational space, increases the level of transparency of financial reporting, and ensures more reasoned and efficient management.